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Selling Art from your Home

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What you need to think about and action you need to take
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Lots of artists sell art from home. It’s a business model that can work well for many artists.
​BUT you do need to be aware of the legal and other  implications of selling from home.

This page covers….

  • Pros and Cons of selling from home
  • Business Law
  • Security
  • Mortgage Provider or Landlord
  • Insurance
  • Health and Safety
  • Planning Permission
  • Taxes

ON ANOTHER PAGE

COMING SOON!

  • Storage of Art at Home

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While much of the government regulations and detailed guidance relates to the UK, the general principles are good for many countries across the world.  Please contact me with any useful guides you’ve found relating to your country.

REFERENCE:
ALERT: Please note how “the rules” work will very much depend on where in the world you live and what I say does not necessarily apply to you – but it might! It’s very much YOUR responsibility to do all the necessary checks to find out what you must and can do if you want to run a business making and selling art from home.

Pros and Cons of selling from home
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PROS of selling art from home

This approach works well for:

  • those who like online marketing
  • those not represented by a gallery
  • those generating commissions via contacts and online marketing

Plus you have a short walk to work and no ‘travel to work’ costs

​However it’s much simpler if all your sales are by post or the internet and nobody ever comes to your home.

CONS of selling art from home

 

  • need to research business law relating to selling art from home
  • additional costs (re insurance, taxes, storage)
  • permission required (re. mortgage lender; planning permission for any change of use)
  • security risks – both personal and domestic and art assets
  • health and safety risks and liabilities
  • gallery represented artists need to check what they can and cannot do re. selling from home
  • storage requirements: your stock never leaves home until it is sold and needs safe, secure and watertight storage plus insurance cover at its retail value (based on evidence of past sales). It can be an incentive to work small! (The winner of a major art prize – who works big – told me he was spending it all on a new external dry and secure store for his stock of artwork!).

Business Law
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If you sell art from your own home or from a stall you own then you need to complay with all relevant law relating to doing business through face to face sales

On-premises sales

​Selling on your business premises – for example, a shop or market stall (or when a contract is not made off-premises or at a distance)

This is the Government’s Quick Guide to the Sale of Goods

These are the links to the detailed Business Companion Guides provided by the Chartered Trading Standards Institute

The Government provides accessible information in the form of a number of Business Guides prepared by the Chartered Trading Standards Institute.

You can access the Guides on the Business Companion website

Relevant legislation for all Business Sales includes the following

Security
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It would be nice to think that everybody who calls or visits is a nice person. Unfortunately that may not be the case.

You need to bear in mind that once out of a public place people do things which they might not try in public.

Artists have had thefts of both household items and artwork and art materials when they let strangers into their home. Sometimes the value of items stolen can be significant. Certainly the nuisance of having to replace essential items can be both time consuming and expensive. Hence the need for insurance – and security.

It’s essential to consider security for:

  • You – as an individual
  • Your art materials and artworks

Checklist – Protect yourself and your assets

Extra security precautions are wise when you have open studios or other occasions when you may well have more than one person in your home.

  • Make sure that you have a companion around during open studios when there may be more than one person in your hom
  • Put away valuable items
  • Put away items which can be put in a pocket

 Mortgage Provider or Landlord
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To run a business from home you need permission from your Mortgage Provider or your Landlord.
Many legal agreements prevent you from running a business from home without permission.

REFERENCE:

A large proportion of mortgage contracts and tenancy agreements prevent residents from working from home. Social housing tenants, for example, are explicitly barred from starting up a business at home.
​Home businesses battle against legislative barriers

Insurance

If you’re selling from home to people who come to your home you MUST think about Insurance.

House Insurance

First you MUST READ what it says in your house insurance – and specifically what it states in the exclusions clauses.

Your house and contents will be insured as a domestic residence not as a place to retail art.  You MUST therefore make sure you do not invalidate your domestic insurance cover.

Third party Liability

If you have third parties (strangers) into your home you are liable for any accidents or injuries they suffer while in your home.

​You MUST make sure you have adequate cover for third party liability which is specifically relevant to people who are not your family or friends visiting your house for business reasons

Ways to limit problems with insurance

  • meet people wanting to buy your art in their own homes or a public place
  • limit public access to Open Studios for a limited number of days in a year – and do an extension to your domestic cover just for those days
  • limit public access to a studio which is separate from the house (with separate additional cover for the business use and public access)
READ MORE about Third Party Liability in the UK in Insurance for Art and Artists

Health and Safety
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The general principle is that Health and Safety Rules and Regulations apply if you have anybody else helping your or being paid to assist you with your artwork.

​​If it’s a place of work then the regulations and rules apply to third parties.

For many businesses, all that’s required is a basic series of practical tasks that protect people from harm and at the same time protect the future success and growth of your business.

Health and Safety Made Simple

Ways to limit problems with health and safety

 

  • limit public or third party access to your studio or house
  • do not employ anybody to help you (if you do then you need to take this section very seriously)

​

REFERENCE:

Planning Permission
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In the UK, you almost certainly need planning permission if you plan to accommodate e.g. an art studio or home gallery for making sales

  • make a permanent change to your home
  • build anything new

That’s because the new use is classified as commercial and retail and NOT domestic. All such changes of use require planning permission and you cannot be certain permission will be granted. Any application for a change of use must be notified to neighbours and they are allowed to comment on how such a change will impact on them and highlight anything relevant in planning law which suggests permission should not be granted.

You’ll probably need planning permission if you want to:

  • – build something new
  • – make a major change to your building, e.g. building an extension
  • – change the use of your building

Planning Permission in England and Wales

REFERENCE:

Local Laws and By-Laws
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The local government in your area can – via its local laws and by-laws dictate what activity or activities you engage in within your home – and can insist that you cease and desist if you are running a business from your home.

CANADA

Many Cities and/or Municipalities in British Columbia, Canada have bylaws that forbid the selling of goods from your home. This depends on what type of planning zone you live.

  • A Zone that includes domestic homes can be Residential, or a mix of Business/Residential dwellings.
  • Some Zones indicate that residents are not allowed to operate any business from a residential dwelling other than offering lessons such as piano lessons, art lessons etc.

(Thanks to Terry Krysak for this information)

Taxes

If you’re thinking of building an extension for a studio or dedicating any part of your home to your art practice you need to check out what the implications are locally for the payment of any taxes or claim for any allowances.

Bear in mind it’s impossible to provide definitive guidance as tax regimes vary by location and the particular circumstances of your personal set-up within your home
  • You don’t usually have to pay business rates for home-based businesses if you:
    – use a small part of your home for your business, eg you use a bedroom as an office
    – sell goods by post
  • You may need to pay business rates as well as Council Tax if:
    – your property is part business and part domestic, eg if you live above your shop
    – you sell goods or services to people who visit your property
    – you employ other people to work at your property
    – you’ve made changes to your home for your business, eg converted a garage to a hairdressers
  • UK HMRC | Business Rates – working from home

Pros of working and selling art from home

  • You can claim the relevant proportion of running costs expenses relating specifically to the separate / part of your home building dedicated to your art (if your turnover and profit levels are such that the tax people will entertain such a claim). You will need to arrive at an verifiable estimate of such costs.

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Cons of working and selling art from home

  • You may find that you need to pay national business taxes on any chargeable gain on the sale of your home. This would relate to the increase in value of any part of your home dedicated to art on which you have claimed tax allowances for business expenses in relation to development and maintenance. (This will vary from location to location)
  • you have to pay business rates on any independent space dedicated to your business. It requires a valuation as a separate heriditament.

Ways to limit problems with taxes

  • Unless you’re a full-time professional artist, consider making any space multi-functional (e.g. a studio doubles up as a guest room when required; the dining room also functions as your office for paperwork from time to time). That way it’s part of your home and not just a dedicated business space.
  • Think about the implications re. business rates if you hold an Open Studios for a few days a year – and sell art from your premises. Contact your local tax office to find out what the issues are BEFOREHAND.

REFERENCE:

UK – Guidance from HM Revenue & Customs

 

Advice and information about selling your art via Open Studios

This page covers:

  • What are Open Studios? Plus where they can be held and what they involve.
  • Advice about Open Studios – before and during + Guidelines about how to hold Open Studios by different groups
  • Open Studios in the UK – a developing list of open studios in the UK – to compare how you do to others

The open studio tour is an event in which artists invite the public to visit their workshops and display spaces. It’s an excellent opportunity to talk first-hand to the artists and to view their work in the environment in which it was created, or to just enjoy ‘having a nosey’ through the various venues.
Wirral Open Studios website

Note: This page is a work in progress

What are Open Studios?
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Open Studios can be

  • held in a variety of venues
  • large or small
  • very local or county wide
  • initiated by an artist
  • organised by a local arts group
  • very successful or a complete washout – it’s up to you (and the weather!)

Range of places to hold Open Studios:

  • an artist’s home
  • purpose made studio
  • work room
  • gardens / in tents / under awnings
  • public venues e.g. Church Halls (for those who are unable to open their homes for practical reasons)

Picture

Claude Monet in his home at Giverny – with his paintings hanging on all the walls

Open Studios involves:

  • opening up your studio or your house to strangers so they can buy your art
  • a lot of organisation before, during and after – so not for the faint-hearted or those who don’t like hard work
  • photographing your artwork for the brochure/website
  • thinking about how best to present your artwork – in frames, matted, matted in clear envelopes etc
  • working out how to price your artwork
  • making sure you have adequate publicity
  • erecting signage to get people to the right venue and through the right door – and to the loo!
  • taking payment for your art and not getting ripped off
  • taking responsibility for your liability for the safety of people in your studio/home (i.e. if they have an accident on your property you are liable)

Open Studios can involve (i.e. entirely your choice):

  • belonging to a Group – participating in an event organised by a local community of artists.  This will take place over a specific time period. You need to (1) pay a fee for registration; (2) observe their code of conduct and (3) benefit from general publicity (and support if your local organisation is well managed)
  • sharing an event with friends in your area
  • sharing a venue with other artists
  • interviews with local newspapers
  • a lot of posting of flyers about your event in the local community (check the bye-laws first to see where you can post without attracting a fine!)
  • a lot of work on social media

Advice about Open Studios
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If you want to sell art from your studio at home or from exhibitions held in your home, you first need to read Selling art from home.
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LIST OF GUIDELINES from various Open Studio events

Before Open Studios – Summary Guidelines
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  • you will need Public Liability Insurance; you MUST check what your house insurance says if selling from home. (See Insurance for Art and Artists)
  • organise / photograph content for the website and handbook – which means decisions need to be taken early.
  • identify dates for being open; events; etc
  • have a rota for who covers at all times – including while you “ablute”
  • setting up takes time – both in terms of what needs to be cleared away and put out of sight and what needs to be hung or positioned and have a label or price sticker prepared
  • how many visitors you get depends on how much publicity you generate e.g. send invites – with personal notes; create a press release; distribute flyers, brochures, postcards, be active on social media within your community (see How to write a press release)
  • think about how best to use social media – and how to avoid the downsides (don’t invite thieves!)
During the Open Studio – Guidelines
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  • make signage effective – how do you tell people they’ve found the right place?
  • make sure your venue is completely safe – no trip or other hazards; no risks to health or safety
  • have a private view for previous buyers or big fans– make people feel special; (see The Private View Invitation)
  • attract more visitors by having a practical eventwhere the public can “have a go” or watch you demonstrate
  • Keep people from leaving – offer food and drink!
  • ​taking payments can be risky – look at the pros and cons of different options (remember most artists won’t have the option to take credit cards and a lot of visitors won’t necessarily have enough cash)
  • Use a visitors book – then you can send publicity next year
  • provide directions to other artists’ studios – and they will do likewise

Open Studios in the UK
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This essentially is an opportunity for artists to check out how others go about it!

Check out how others present their Open Studios and

  • provide information for the public – some have well designed and free downloadable guides to what’s on offer – and some do not! Some have well thought out and well designed websites (with responsive templates so they work on mobile devices) – and some have clunky ones which do not!
  • provide advice for artists – some provide very little; some hide it behind a password controlled members area; some are very transparent and helpful to those thinking about participating

Check out

  • how different Open Studios promote themselves on Facebook, Twitter and via a newsletter – or if they continue to rely on local publicity.
  •  how customer oriented the websites and downloads are
  • where links to their social media sites are placed on their websites? (Do they catch your eye?)
  • whether they have a fast and easy download to where studios are – which works well on a mobile device?

Open Studios in London

  • Bow Arts Open Studios – across East London
  • Cockpit Arts – Open Studios – an an award winning social enterprise supporting craft practitioners
  • Crouch End Open Studios – includes a Group Exhibition as well as open studios
  • Hackney WickED Open Studios – 100+ practitioners across 20+ buildings in Hackney Wick. In 2017 there’s a series of smaller scale curated events, focusing on each of the key pillars of engagement: Art Exhibitions, Open Studios, Performance, Music, Film and Development
  • N22 Open Studios – based in the Chocolate Factory and the Wood Green Cultural Quarter

Open Studios – East of England

Open Studios – North of England

Open Studios – South of England

Open Studios – West of England

  • Open Studios Cornwall – 293 artists, craftsmen and designers opening their studios for 9 days; provide a downloadable event guide as a pdf; organised in four areas of Cornwall

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